The powder-in sheath rolling was applied to the fabrication of composite. A stainless steel tube with outer diameter of 12 mm and wall thickness of 1 mm was used as a sheath. Mixture of aluminum powder and particles of which volume content was varied from 5 to 20 vol.% was filled in the tube by tap filling and then rolled to 75% reduction at ambient temperature. The re]]ed specimen was sintered at 56 for 0.5 hr. The composite fabricated by the sheath rolling and subsequent sintering showed the relative density higher than 0.96. The tensile strength of the composite increased with the volume content of particles, and it reached a maximum of 90 MPa which is 1.5 times higher than unreinforced material. The elongation decreased with the volume content of particles. It is concluded that the powder-in sheath rolling is an effective method for fabrication of composite.